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2019/2020– 2021/2022 Final Annual Budget and Medium

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2019/2020– 2021/2022 Final Annual Budget and Medium 2019/2020– 2021/2022 FINAL ANNUAL BUDGET AND MEDIUM - TERM REVENUE AND EXPENDITURE FRAMEWORK (MTREF) CONTACT INFORMATION Mr. N DIAMOND Telephone Number: 013 759 2040 MUNICPAL MANAGER Fax Number: 013 759 2274 Email: [email protected] Mr. W.J KHUMALO Telephone Number: 013 759 9060 CHIEF FINANCIAL OFFICER Fax Number: 013 759 9055 Email:[email protected] Ms. Z P MALAZA Telephone Number: 013 759 2013 DEPUTY CHIEF FINANCIAL OFFICER Fax Number: 013 759 9055 E-mail: [email protected] Ms. D N SIBANYONI Telephone Number: 013 759 9143 SENIOR MANAGER – FINANCIAL Fax Number: 013 759 9055 PLANNING AND BUDGETING E-mail:[email protected] Mr. S F DLAMINI Telephone Number: 013 759 9249 CHIEF ACCOUNTANT – BUDGET AND Fax Number: 013 759 9055 REPORTING Email:[email protected] Ms. T M KGOTSE Telephone Number: 013 759 2005 SECRETARY – OFFICE OF THE CHIEF Fax Number: 013 759 9055 FINANCIAL OFFICER Email: [email protected] TABLE OF CONTENTS PART 1 – ANNUAL BUDGET ............................................................................................... 6 1.1 MAYOR’S REPORT ....................................................................................................................................................... 6 1.2 COUNCIL RESOLUTIONS ............................................................................................................................................. 6 1.3 EXECUTIVE SUMMARY .............................................................................................................................................. 11 1.4 OPERATING REVENUE FRAMEWORK ..................................................................................................................... 21 1.5 OPERATING EXPENDITURE FRAMEWORK .............................................................................................................. 25 1.6 CAPITAL EXPENDITURE ............................................................................................................................................ 31 1.7 ANNUAL BUDGET TABLES - PARENT CITY ................................................................................................................ 45 PART 2 – SUPPORTING DOCUMENTATION ....................................................................................................... 64 2.1 OVERVIEW OF THE ANNUAL BUDGET PROCESS .................................................................................................................................................... 64 2.2 OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITH THE IDP .......................................................................................................................... 68 2.3 MEASURABLE PERFORMANCE OBJECTIVES AND INDICATORS .......................................................................................................................... 78 2.4 OVERVIEW OF BUDGET RELATED-POLICIES .......................................................................................................................................................... 82 2.5 OVERVIEW OF BUDGET ASSUMPTIONS .................................................................................................................................................................. 96 2.6 OVERVIEW OF BUDGET FUNDING ............................................................................................................................................................................ 99 2.7 BUDGET SUPPORTING ABLE………………………………………………………………………………………………………………………….………...104 2.8 LEGISLATION COMPLIANCE STATUS ................................................................................................................................................................. …131 2.9 MUNICIPAL MANAGERS’ QUALITY CERTIFICATION .............................................................................................................................................. 134 2019/2020 – 2021/2022 Approved Final Budget and Medium Term Revenue and Expenditure Framework Page 3 ABBREVIATIONS, ACRONYMS AND DEFINITIONS COGTA – Department of Co-operative Governance and Traditional Affairs CPI – Consumer Price Index DORA – Division of Revenue Act EPWP – Expanded Public Works Programmes GDP - Gross Domestic Product GRAP – Generally Recognised Accounting Practices IDP – Integrated Development Plan. INEPG – Integrated National Electrification Program Grant MFMA – Municipal Finance Management Act, 56 of 2003 MIG – Municipal Infrastructure Grant MPRA – Municipal Property Rates Act, 06 of 2004 MSA – Municipal Systems Act, 32 of 2000 MDTG – Municipal Demarcation Transition Grant MTREF – Medium-term Revenue and Expenditure Framework WSIG – Water Services Infrastructure Grant MWIG – Municipal Water Infrastructure Grant NDPG – Neighbourhood Development Program Grant NERSA – National Electricity Regulator of South Africa NT – National Treasury PT – Provincial Treasury PTISG – Public Transport Infrastructure Systems Grant SDBIP – Service Delivery and Budget Implementation Plan The Act – Refers to the Municipal Finance Management Act, 56 of 2003 Adjustment Budgets – Prescribed in section 28 of the Municipal Finance Management Act. It is the formal means by which a City may revise its budget during a financial year. Equitable Share – A general grant paid to municipalities. 2019/2020 – 2021/2022 Approved Final Budget and Medium Term Revenue and Expenditure Framework Page 4 Operational Expenditure – Spending on the day to day expenses of the City such as general expenses, salaries and wages, and repairs and maintenance. Rates – Local Government tax based on assessed valuation of a property. Allocations – Money received from Provincial and National Treasury. Budget – The financial plan of the City for a specific period. Capital Expenditure – Spending on municipal assets such as property, plant and equipment’s. Any capital expenditure must be reflected as an asset on a City’s balance sheet. 2019/2020 – 2021/2022 Approved Final Budget and Medium Term Revenue and Expenditure Framework Page 5 PART 1 – ANNUAL BUDGET 1.1 MAYOR’S REPORT 2019/2020 MUNICIPAL BUDGET SPEECH BY THE EXECUTIVE MAYOR OF THE CITY OF MBOMBELA, CLLR S.P MATHONSI – 31 MAY 2019 The Honourable Speaker of council, Cllr G.S. Siwela Honourable Chief Whip of council, Cllr M. Nsimbini Honourable Party Whips Honourable Councillors Honourable Traditional Leaders present The City Manager Senior Management of the municipality Distinguished Guests Members of the media Ladies and Gentlemen Good Day Honourable Speaker, we appreciate and treasure the opportunity presented to us as the Executive to present our envisaged roadmap for, not only for the next financial year but a roadmap that will see us through the remainder of this five year term of office. The aftermath of the 2019 National and provincial elections have had a huge bearing on the City of Mbombela. The outcomes of these elections have seen three of the city’s key and experienced members of its council deployed to the Mpumalanga Provincial legislature to continue serving at various portfolios as determined by their political parties. These are former Councillor Mandla Msibi who had served as both Ward Councillor for in the greater Daantjie area of ward 2 as well as the Speaker of this council; Councillor Vusi Mkhatshwa who served as the Member of the Mayoral Committee responsible for the Public Works, Roads & 2019/2020 – 2021/2022 Approved Final Budget and Medium Term Revenue and Expenditure Framework Page 6 Transport portfolio and Councillor Trudie Grove-Morgan who served as Ward Councillor for Ward 30 in the greater White River area. The city wishes the three seasoned former councillors well in their new roles in government in pursuit of excellent service to the people of Mpumalanga. Just the other day, we learnt with excitement that one of our own, the former speaker, honourable MJ Msibi was appointed the MEC for Cooperative Governance & Traditional Affairs, meaning that he is not lost to local government. We are optimistic that his local government experience will stand him in good stead in this portfolio. In the same breath, we are also excited to welcome the newly elected honourable Speaker, duly elected to lead this august house for the remainder of this term of office of this Council. In you, Councillor Siwela we have a man who is equal to the task, with wealth of experience, having been in the local government sphere for a number of terms of office. As a former member of the Executive Arm as well as a being a Ward Councillor at some point, I think I am speaking on behalf of all of us in this house that you will discharge your responsibilities of oversight to the executive with aplomb as he is quite versed on what is expected of us as mandated by council. Of course we would be doing so much injustice if we do not congratulate and wish all the ministers and deputy ministers well as appointed by the president on Wednesday night coming from our beautiful province of Mpumalanga to be part of his cabinet, some of whom are from the City Mbombela, having graced this very Council Chambers. The province has a total of 9 representatives in the Executive (Deputy President, 2 Ministers and 6 Deputy Minister), a milestone worth celebrating indeed. We believed that as we enter the new dawn of self-correct and renewal, we will usher in the new light that will give our people a sense of pride and belonging. Today, as we reflect on the year that
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